Previously, Morgan Stanley analyst downgraded Caterpillar (CAT.US) investment rating from "hold" to "reduce", and lowered the target price from the previous $349 to $332 per share.
According to the financial news app, Morgan Stanley analyst previously downgraded Caterpillar (CAT.US) investment rating from "hold" to "reduce", based on a 16 times unchanged valuation of Caterpillar's 2025 earnings (rather than the 2024 earnings expectations), and lowered Caterpillar's target price from the previous $349 to $332 per share. The stock fell 2.5% in pre-market trading on Monday and closed down 2% on Monday.
Morgan Stanley analyst Angel Castillo stated in a report on October 14th, "Despite our cautious stance on non-residential construction activity in the United States throughout the year, and increasingly cautious about Caterpillar's profitability, we now see more and more evidence indicating a possible decrease in inventory of construction equipment in the USA." "We believe there is a greater risk of downward revision in Caterpillar's performance."
